A state-by-state breakdown of "shadow inventory" suggests that while Nevada, Arizona and California have the highest foreclosure rates in the nation, buyers will clear those properties from the market at a faster rate than in most other states.

The analysis, by National Association of Realtors Research Economist Selma Hepp, shows the impact of shadow inventory is likely to linger for much longer in states like New York, New Jersey, Florida, Illinois and Washington, where distressed properties make up a smaller percentage of sales.